Edmund Leow has enjoyed a stellar career in law and exudes the same passion for his subject as if he were still climbing the legal profession ladder. But actually he is at the pinnacle – he has been senior partner at international law firm Dentons, Rodyk & Davidson LLP in Singapore since 2017, joining directly from three years in a prominent role as a judge with the Supreme Court there. That call to serve his country came after 26 years practising law at the prestigious Baker & McKenzie, first in London from 1987 and then in Singapore. Hubbis was privileged to enjoy his company via video call in early January, during which we learned much of the increasing dynamism of wealth structuring and estate and succession planning in Singapore. Leow explained that more relevant and tax-effective structures have become available in recent years, helping the island republic attract more ultra-wealthy families to its shores to establish vehicles and family offices, and thereby helping Singapore
5 minute read
As a self-employed person in Singapore, there are certain money matters that you need to be responsible for and one of them is making your own CPF contributions.
Self-employed individuals with a net trade income above $6,000 a year must make mandatory CPF contributions into their Medisave Account (MA). Although contributions into their MA is compulsory, there is also an option to make Voluntary Contributions (VC) into all three CPF accounts – Ordinary Account (OA), Special Account (SA) and Medisave Account (MA) – instead of just the MA. However, you can’t make Voluntary Contributions to your OA only.
There is also a maximum amount of Voluntary Contributions you can make in a calendar year, which is the CPF Annual Limit of $37,740 minus mandatory contributions to MA. If both voluntary and mandatory contributions reach the CPF Annual Limit, no further Voluntary Contributions can be made.
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Just in time for the holidays, the OECD has published
detailed guidance about the impact of the COVID-19 pandemic on
transfer pricing. The guidance has useful information for taxpayers
and tax administrations alike. It contains general advice on the
application of basic transfer pricing principles during the
pandemic, as well as specific advice on four issues: (i)
comparability analyses, (ii) allocating losses, (iii)
government-assistance programs, and (iv) advance pricing
arrangements ( APAs ). The OECD guidance is broadly
consistent with comments we made in
a prior post about the impact of the pandemic on transfer
6 minute read
Singapore corporate income tax is a flat 17% of a company’s chargeable income. This is already one of the lowest and most competitive corporate income tax rates in the world. Nevertheless, there are still ways to further reduce your corporate income tax.
Tax Exemption Scheme For New Start-Up Companies
Introduced in YA 2005 to support entrepreneurship and help new local companies grow, the tax exemption scheme provides tax savings for new companies in your first 3 consecutive Year of assessments (YA).
From YA 2020 onwards, new start-ups are given 75% exemption on the first $100,000 of their chargeable income, and a further 50% exemption on their next $100,000 of chargeable income. Here’s how your new start-up may save on corporate income tax:
The New Paper
Wage Credit Scheme payouts helped employers raise Singaporean workers salary. TNP FILE PHOTO
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More than 95,000 employers received over $1 billion in payouts under the Wage Credit Scheme (WCS) this year to help them fund the wage increases of their Singaporean employees.
The next tranche of payouts will take place in March next year, said the Ministry of Finance and Inland Revenue Authority of Singapore (Iras) in a statement yesterday.
Employers do not need to apply for WCS payouts. Those who are eligible will be notified by end-March on the amount they will receive.
To qualify for the eighth tranche of payouts, employers must have raised the gross monthly wages of their Singaporean employees by at least $50 this year, or maintained the previous wage increase of at least $50 given in 2017, 2018 and/or 2019, or done both these things.